Buy Now & Pay Now

by Pam on September 8, 2009

buy now, pay nowI’m sure everyone has heard the phrase, “Buy now, pay later.”  Almost every major furniture and appliance company has this kind of offer.   You can also often purchase electronic devices and all kinds of other gadgets this way.  Well, I want to be a bit contrary here and suggest that when you make purchases, whether they are big or small, pay for them at the time of purchase rather than waiting to pay.  Below are some reasons why I am suggesting this:

1.  Who wants extra debt?  Buy paying later you have taken on yet another debt that you will eventually have to pay.  Wouldn’t you rather just pay for it and get it over with?

2.  If you wait to make your purchase until you save up enough money, you will be more certain that it is really what you want.  You are less likely to impulse buy if you discipline yourself to ensure you have the funds before making purchases.

3.  By paying now you will eliminate the possibility of having to pay interest charges on your purchase.

4.   If you decide to pay later, there is a chance that you may forget about it and not save an adequate amount of money in order to make the payments once they begin.

That being said, there is one situation where I think buying now and paying later could be financially beneficial.  For instance, you buy a washer and dryer for $1000.  The offer is to pay for the appliances in 2010 but you don’t have to pay interest.  You currently have the money available to pay now, but since you won’t have to pay interest, you decide to invest the $1000 instead.  Then, in 2010, you pay for your purchase in full, after having earned interest on your money through your investment.  In my opinion, that would be the only time it would make sense to buy now and pay later when it comes to making small and medium-sized purchases.

Share

{ 0 comments… add one now }

Leave a Comment

Time limit is exhausted. Please reload CAPTCHA.

Previous post:

Next post: